European Union’s plan for carbon push stokes public backlash fears

BRUSSELS/LONDON (Reuters) – A European Union plan to extend carbon pricing to the fuel used in cars and to heat homes is facing a wall of early resistance from countries and lawmakers fearing a public pushback unless backers find ways to compensate those worst hit.

According to leaked drafts, the scheme would set up an Emissions Trading Scheme (ETS) for transport and heating, creating a market price for carbon – a price that fuel suppliers are likely to pass on to Europe’s half a billion consumers in the form of higher bills.

Expected to be part of a package of proposals on July 14 aimed at ensuring the EU hits a target of cutting net emissions by 55% by 2030, it has been singled out by some capitals as something that could hurt the poorest in the 27-nation bloc.